Shares of Healthcare Services Group (NASDAQ:HCSG) have jumped today, up by 13% as of 12:15 p.m. EST, after the company reported fourth-quarter earnings results. Profits were in line with expectations and the provider of ancillary healthcare services increased its quarterly dividend.
Revenue in the fourth quarter was $447 million, which translated into net income of $18.9 million, or $0.25 per share, by the time it reached the bottom line. Analysts were modeling for $0.25 per share in profits. Operating cash flow was $13.4 million.
"During the quarter, we were focused on managing the base business and effectively deploying our account managers to new opportunities," CEO Ted Wahl said in a statement. "That focus paid off, as we delivered solid facility-level results and made progress on reassigning account managers to new facilities."
Wahl added that Healthcare Services Group would continue focusing on the base business throughout 2020 while taking a conservative approach to credit-related decisions. The company announced a quarterly cash dividend of $0.20125 per share, up from $0.20 per share last quarter. Healthcare Services Group also appointed Andy Kush, who had already been overseeing the company's field-based operations, as COO.
"Our longer term growth outlook remains positive, as we believe there is great opportunity for continued expansion," Wahl said. "The demand for our services remains strong, with significant white space to drive long-term growth."